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    Final PPT of Nike

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    wai
    Nike's value chain involves coordinating activities across firms from raw material suppliers to retailers. Nike focuses on support activities like developing technology for shoes and managing human resources. Its primary activities include outsourcing production to partners with low costs, centralizing R&D, using logistics to quickly move products, and heavily marketing its brands. Nike aims to efficiently manage its value chain activities to design, produce, and deliver high quality athletic products to consumers.

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    Final PPT of Nike

    Uploaded by

    wai
    94 views21 pages
    Nike's value chain involves coordinating activities across firms from raw material suppliers to retailers. Nike focuses on support activities like developing technology for shoes and managing human resources. Its primary activities include outsourcing production to partners with low costs, centralizing R&D, using logistics to quickly move products, and heavily marketing its brands. Nike aims to efficiently manage its value chain activities to design, produce, and deliver high quality athletic products to consumers.

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    20597365 Final Ppt of Nike

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    Nike's value chain involves coordinating activities across firms from raw material suppliers to retailers. Nike focuses on support activities like developing technology for shoes and managing human resources. Its primary activities include outsourcing production to partners with low costs, centralizing R&D, using logistics to quickly move products, and heavily marketing its brands. Nike aims to efficiently manage its value chain activities to design, produce, and deliver high quality athletic products to consumers.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    94 views21 pages

    Final PPT of Nike

    Uploaded by

    wai
    Nike's value chain involves coordinating activities across firms from raw material suppliers to retailers. Nike focuses on support activities like developing technology for shoes and managing human resources. Its primary activities include outsourcing production to partners with low costs, centralizing R&D, using logistics to quickly move products, and heavily marketing its brands. Nike aims to efficiently manage its value chain activities to design, produce, and deliver high quality athletic products to consumers.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 21

    VALUE CHAIN OF

    NIKE

    Just do it!
    Prepared by:
    Hemali anadkat (2)
    Banty haldhruwala (35)
    Monica mota (57)
    Hiral Parikh (61)
    Nishra Shah (94)
    Amita Ganava
    What is value chain?

    The network of firms that bring products to


    market, from companies that produce raw
    materials to retailers and others that deliever
    finished products to consumer. Economic
    value is added through the coordinated
    management of the flow of phisycal goods
    and associated information at each stage of
    the chain.
    We can say that a value chain is a string of
    companies working together to satishfy
    market demand
    THE VALUE CHAIN:

    FIRMS INFRASTRUCTURE

    SUPPORT HRM
    ACTIVITIES
    PRODUCT DEVELOPMENT AND TECHNOLOGY

    PROCUREMENT

    INBOUND OPERATIONS OUTBOUND MARKETING SERVICES


    LOGISTICS LOGISTICS AND SALES

    PRIMARY ACTIVITIES
    NIKE s Introduction:
    Nike means the greek goddess of victory
    Major publically traded sports wear and
    equipement supplier base in the U.S
    Head quartered in the portland metro
    politen area of oregon, near beaverton.
    Worlds leading suppliers of athletic shoes
    and apparel and a major manufacturer of
    sports equipments with revenue in access
    of $16 billion USD in 2007.
    Employed over 30,000 people world wide.
    Contd
    Nike markets its products under its own
    brand as well as nike gold, nike pro, nike
    plus, air jordan , nike skate body,jeam
    starter, and subsidaries including cole
    haan, hurley international, umbro and
    converse.
    Support activities:
    1. Infrastructure:
    Diversify business portfolio with new acquisitions
    Empowerment of top management.
    Structure of matrix.
    Focus on key countries, key factors, critical
    compliances.
    Drive a lean effective compliance process through
    strategic knowledge, remediations and varification.
    Drive a shared accountability and work place
    ownership of CR compliance.
    Encourage work ethics.
    Financially decipilne.
    Calculate risk taking.
    Strong financial position with minimal long term
    debts.
    Contd..
    2. Human Resource:
    core values of the companies are honesty,
    competitiveness and team work.
    Operates with minimum of hierarchy.
    Lot of collabration and consensus decision making.
    Use matrix organisation.
    Balances creativity with structure and decipline.
    Strong management team and good corporate
    strategy in both north american and overseas
    market.
    Socializing
    Mix of new hires and promotions
    Promotions= consistency / company knowledge
    New hire employees= business minded
    Contd
    Network structure.
    Athelete management.
    Monetoring labour audit, compliance visit, brand
    audits.
    Contd
    3. Technology:
    First mover advantage in E-Commerce.
    Diversity and variety in products offered on
    the web (footwear, apparel, sporting
    equipments etc).
    Innovative designs in footwear enabling
    customers to design their own shoes online.
    AIR SOLE technology- specially used.
    Contd.

    4. Procurement:
    Just in time strategy.
    components arrive as they are needed.
    finished goods shipped after leaving assembly
    line.
    Safety stock
    buffer for lack of flexibility in supply chain.
    Bullwhip effect
    information about product demand gets distorted
    as it passes from one entity to next across supply
    chain.
    Role of Inventory in the Supply
    Chain:
    Improve Matching of Supply
    and Demand
    Improved Forecasting

    Reduce Material Flow Time

    Reduce Waiting Time

    Reduce Buffer Inventory

    Supply / Demand Seasonal


    Economies of Scale Variability Variability

    Cycle Inventory Safety Inventory Seasonal Inventory


    Figure Error! No text of
    Inventory Classification:
    INVENTORY

    PRODUCTION ABC DEMAND OTHER


    APPLICATION ANALYSIS TYPE

    Raw Materials A Items Independent MRO


    Components B Items Dependent
    WIP C Items
    Sub-assemblies
    Finished Goods
    Primary Activities:
    1. Inbound logistics:
    Low production cost.
    Outsource non-core activities.
    Focus on their core-competencies of
    Product design
    Maketing
    AIR SOLE Tech.
    Due to virtual relationship with the companies
    who assemble nike products allows them to
    switch to companies that provide low labour cost
    & a quality product.
    Worldwide supply chain project used by nike help
    it to reduce inventories and investment risk.
    Contd
    Shared process through a wholly owned
    subsidiary called nike. In house manufacturing (
    Nike IHM) produces many of specialized rubber,
    foam and plastic components used in its
    products.
    Nike IHMs primary facilities are located in
    portland oregon and st. louis, missain.
    Contd..
    2. Operations:
    Centralisation of R&D in oregon.
    Application of NSRL.
    Nike requires manufacturing partners to devote
    environmental resources.
    Nike provides technological resources to its
    resources centre such as R&D centres,
    laboratories.
    Nike personnel in each factory to assist factory
    management.
    working on low and no packaging options.
    reduce box styles from 18 to 2.
    Corrugated card board.
    100% post consumer content.
    Contd
    No heavy metal inks.
    no glues or solvents
    Boxes manufacture in zero net discharge
    facilities.
    Contd

    3. Outbound logistic:
    Strong control over its own distribution channel.
    Powerful suppliers one company is producing
    40% of worldwide shoes.
    Ability for forward integration.
    Due to virtual relation with suppliers.
    Reduce administrative cost.
    Reduce pay roll cost.
    Can increase the speed their product flows through
    supply chain
    This allows them cut down on the amount of time
    required from the initial design to, production and
    then distribution.
    Contd..
    Nike is using HP servers , software and
    consulting service to run their new supply chain
    project.
    Contd..

    4. Marketing and sales:


    Brand recognisation and reputation.
    Higher allocation of marketing budgets.
    Use endorser in every sport.
    Emerging brand name.
    Strong customer base.
    Diversity and variety of products offer on the
    web.
    Ecommerce reduce the cost of good sold thus
    improving the bottom line.
    Contd..

    5. Services:
    Improved service to meet customer/consumer
    needs through the use of the technology.
    Improved process , information & product
    quality.
    Provide customize shoes for customers.
    A company called planner has installed touch
    screen system in nike stores to allow
    customers to build their own shoes.
    Nike also allows customers to order
    customize shoes online through their
    Thank You
    Real leadership is not about prestige,
    power or status.It is about responsibility.

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